1. 1 MORTGAGE SYMPOSIUM June 30, 2009 ECCB Headquarters @ 5.30 p.m.

2. 2 MEETING YOUR BANKER PERSONAL APPLICATION Latest Pay Slip/Job Letter 2 Pieces of Picture identification Proof of deposits held-Bank book/Statements Information on present borrowings Copy of title document Approved Plans Recent estimates dated & Signed by contractor Purchase Agreement (Property Purchase )

3. 3 MEETING YOUR BANKER INVESTOR Proposal Requirements: Total cost of project: Does it include furniture/appliances ? Cash Input vs amount to be borrowed Monthly repayment Cash Flow from rental taking into consideration: Non rental of some units Repairs/Maintenance Utilities-Electricity, water, cable, internet Insurance Taxes

4. 4 USD MORTGAGES RBC launched this product in March 2009 Loans in excess of USD150,000 70% financing available for amounts under $500,000 60% -$501,000- $750,000.00 55% $750,001 - $1,000,000.00 50% over $1,000,000.00

5. 5 Equity Calculations Example 1 Land Cost/Value $ 50,000 Estimates $300,000 Total Project cost $ 350,000 10% DEPOSIT = $35,000.00 You can borrow up to $300,000 as the cost/value of the land covers your down payment Value of land is utilized if purchased over 5 years ago

6. 6 Equity Calculations Example 2 Land price/value $ 20,000 Estimates $300,000 Total Project cost $320,000 10% DOWN PAYMENT = $32,000 Client will have to inject $12,000 in cash as bank will only lend up to $288,000 Value of land will be utilized if land purchased 5years previously

7. 7 Debt Service Calculations Annual Figures Total Income New Advance Salary Existing RBC Rental Income Other Bank Loan Part time Salary Rent/Mortgage Investments Insurances/Taxes Credit Cards 5% of limit Utilities (Telephone etc Total Income Total Expenses DSR

8. 8 Mortgage Indemnity Insurance The bank reduced the amount of down payment required by clients from 20% to 10%, however we still have to maintain the 20% equity requirement. This is covered by Mortgage Indemnity insurance on the difference between the clients minimum 10% down payment and the banks requirement. It is calculated as follows:

9. 9 Mortgage Indemnity Loan proposal of $300,000.00 Project Cost $350,000 Required equity: $350,000 x 20% = $70,000 Client has an input of $50,000.00 They have 2 options inject an additional $20,000.00 or pay a one time fee calculated as follows: $70,000 - $50,000 = $20,000 x 5.75% =$1,150.00

10. 10 Legal Fees/Stamp Duties Loan amount of $300,000.00 If title is held by Certificate of Title We hold title by way of equitable Mortgage Fees/Duties = $4,308.16 If title is held by Deed We hold title by way of legal mortgage Fees/Duties = $6,632.20

11. 11 TOTAL FEES Negotiation Fee – 1% of loan $3,000.00 Stamp Duty on Promissory Note 300.00 *Valuation Report (.0025 x value) 875.00 Mortgage Indemnity 1,150.00 Legal Fees -COT 4, 308.16 Site visits 1,600.00 GRAND TOTAL $11,233.16 *Additional fees include site visits

12. 12 Mortgage Symposium Thank you for your attention Any Questions?